Central Bank– The Central Bank is in charge of organizing the economy’s payment system. This includes policies related to cash, its design, printing, distribution, and destruction, and policies aimed at promoting other means of payment, such as electronic ones.
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Cash
The Central Bank takes various actions to improve the usefulness and quality of bills and coins in circulation.
In 2016, larger denomination bills were circulated to meet an apparent demand from financial institutions and citizens adequately.
In addition, a plan for destroying banknotes in poor condition has been developing to improve the quality of banknotes in circulation. Its removal from the system will reduce logistics, security and storage costs for the financial system, including the BCRA.
To achieve greater efficiency in the distribution of cash and generate savings for the State, in 2016. The Central Bank promoted the generation of a cash market so that financial entities could dump their supply of surplus cash or cover their demand for missing money without the banknotes and coins in circulation having to go through the Central Bank.
This mechanism is more efficient for the system as a whole and implies significant savings for the entity since the financial entities themselves must be in charge of locating the cash they offer or obtaining the money they need.
Electronic payment Methods
What is it about
Promoting greater use of electronic payment methods is one of the Central Bank’s management axes.
Increasing the acceptance network for electronic payment methods is a crucial pillar of financial inclusion policies.
Encouraging the massive use of electronic means of payment helps to hinder organized crime. Drug trafficking and money laundering, as well as to formalize the economy. Which allows for more even and moderate tax burdens.
The Central Bank has adopted many measures as of 2016 to promote electronic means of payment.
Immediate Debit (DEBIN)
In 2016, the Central Bank incorporated a new means of payment: DEBIN, whose name refers to “immediate debit”. This medium enables financial entities and new players in the payment method industry to debit funds from the bank accounts of their clients and clients that they authorize to make payments.
The DEBIN allows you to pay with a direct transfer and also request it from your PC or cell phone.
Unlike other means of payment. The DEBIN is an immediate online transfer through which the person who collects initiates the process and who pays only has to admit it. For this, the home banking and mobile banking organizations added the “DEBIN Payments” menu. Where the user can generate payment requests and see the list of bids received to accept or reject them.
DEBIN accepts payments in pesos or dollars between accounts of the same currency. Unlike share transfers, the other party does not have to be previously incorporate. It is sufficient to ask for their account name (Alias CBU) without adding additional information such as the DNI or CUIT. It also allows you to program, or recurring charges. The automatic acceptance of future orders made from certain accounts, with fixed dates and limits.
The BCRA designated the Low-Value Clearing House (COELSA), under direct regulation of the monetary authority. As an administrator of these operations. This institutional design makes it possible to guarantee competition in this industry.
Transfer Payments – Transfers 3.0
The Central Bank launched Transfers 3.0 at the end of 2020 to promote open and universal digital payments and achieve greater inclusion of those sectors that do not yet use financial services.
Now, people can scan any QR code and quickly and easily make transfer payments with just a phone and any virtual wallet or banking app that offers that service. Transfer payments are more accessible, efficient and secure, thus avoiding using cash.
It is enough to have a single application or electronic wallet installed on the cell phone: transfer payments can be made from bank accounts with CBUs and payment service provider accounts associated with a CVU. It is also not necessary to have a debit card.
The new open and universal ecosystem stimulates greater competition between the different players in the system, which results in better conditions for users and businesses.
Features:
Interoperable: transfer payments can be made from bank accounts with CBUs and payment service provider accounts associate with a CVU. For this, the Standardized Payment Interface (IEP) was created with an open architecture that allows all sight accounts in financial and payment institutions in non-bank payment service providers to interoperate.
Immediate: merchants receive accreditation automatically, either in bank or payment accounts. Total immediacy of payments is guaranteed 24 hours a day, seven days a week.
Payments are irrevocable
Economic: The person who buys never pays the commission.
As for businesses, they have lower costs since these payments have a price range between 6 and 8 per thousand (plus VAT), adding lower financial costs due to immediacy. In addition, they reduce the use of cash on the premises, resulting in lower expenses and greater security. Finally, it allows them to expand the range of payment options.
Debit and Credit Cards
Debit
It is a means of payment, a way to pay for products and services. The debit card is link to a bank account. And one of its main features is that the amount is automatically debit from the related account when paying.
In addition, it allows you to carry out other operations through ATMs. Such as checking balances, making transfers, withdrawing cash, paying for services, and charging balance to your SUBE card.
All businesses, companies, professionals, and that carry out operations with final consumers must accept payment by debit card. Only premises whose activity is Carrie out in towns with less than a thousand inhabitants or when the functions do not exceed the value of one hundred pesos are exempt. ( Decree 933/18 / Law No. 27,253 ).
The automatic debit payment must not have an additional amount or surcharge.
Credit Card
It is a payment instrument manage by a financial institution or a credit card issuing company. One of the characteristics of this means of payment is that they offer the possibility of paying in instalments (in instalments).
It allows you to make purchases in stores and online stores affiliated with the card payment network. It can also be use to withdraw cash at ATMs.
Disparate the debit card, the funds to be use at the time of creating a purchase do not have to be previously deposit. This amount can be paid in whole or part, and the outstanding debt accrues interest. For this, the entity sends a summary with all the transactions carried out, the due date and the amount owed.
Conclusion:
Economic and financial stability is largely dependent on central banks. In order to achieve low and stable inflation, they implement monetary policy. Following the global financial crisis, central banks have increased the tools at their disposal to address threats to financial stability and control fluctuating exchange rates.